How much income does ₹30 lakh in SCSS pay?

At the current 8.2%, ₹61,500 every quarter — ₹2,46,000 a year — with the ₹30,00,000 returned in full after five years. The amount never changes during the term, because the principal is never touched and nothing compounds.

Who can open an SCSS account?

Anyone aged sixty or over. Those who took voluntary retirement can open one from fifty-five, and retired defence personnel from fifty, subject to conditions on when the deposit is made relative to retirement.

Is SCSS interest taxable?

Yes, at your slab rate, and TDS applies above the threshold. Section 80TTB does give senior citizens a deduction on interest income which offsets part of it, and the deposit itself qualifies for Section 80C. None of that is computed here — these are pre-tax figures.

Why does SCSS return less than a compounding deposit?

Because money paid out cannot earn anything further. Five years of 8.2% paid quarterly returns 41% of the deposit; the same rate compounded quarterly returns 50.1%. The difference is not a lower rate — it is the arithmetic of withdrawal, and it is the cost of receiving the income as it is earned.

Can I extend the account after five years?

Yes, once, for a further three years, at the rate prevailing on the maturity date rather than your original rate. Enter eight years above to see what the extended term produces.

Should I use SCSS or a systematic withdrawal plan?

SCSS gives a certain income at a fixed rate with government backing, but the amount never rises and inflation erodes it. An SWP from a fund can be increased over time and the corpus may grow, but the income is not guaranteed and the corpus can be exhausted. Many retirees use SCSS for the floor and an SWP for the part that needs to keep pace.

Investment · FINANCIAL TOOLS

Senior Citizen Savings Scheme Calculator

Work out the quarterly income from an SCSS deposit, and what it costs relative to letting the same rate compound.

Understand the calculation

Calculation logic, formula, example and guardrails behind the estimate.

How it works

Each quarter's payout is the deposit times the annual rate, divided by four. The principal is untouched throughout and returned in full at the end of the term, so the income is identical every quarter for five years.

The figure worth attention is the last one. The same rate compounded quarterly rather than paid out would produce a materially larger total, and the gap is shown explicitly. It is not an argument against the scheme — someone who needs the income needs the income — but it is the real cost of the choice.

More detail

The rate is fixed when you deposit and holds for the whole term, which is a genuine advantage over a bank deposit whose rate is reset on renewal. It also means the income does not rise with inflation over five years.

The ₹30 lakh ceiling is per person rather than per household, so a couple who both qualify can hold ₹60 lakh between two accounts and roughly double the income.

For the market-linked way of drawing an income, see the SWP calculator.

To compare against a bank deposit, use the fixed deposit calculator.

To see what a fixed income is worth in five years, try the inflation calculator.

Formula

Quarterly payout = P × r ÷ 4; Total received = P + (P × r × years)

There is no compounding term, and that absence is the whole calculation. The comparison figure uses P × (1 + r/4)^(4 × years), which is what the same rate would produce if nothing were withdrawn.

P: Amount deposited.
r: Annual rate, as a decimal, fixed at deposit.
years: Term — five, or eight if extended.

Worked example

The maximum ₹30,00,000 deposited at the current 8.2%, held for the full five-year term.

01Paid each quarter₹30,00,000 × 8.2% ÷ 4 = ₹61,500
02Income each year₹2,46,000
03Interest over five years₹12,30,000
04Principal returned₹30,00,000
05Total received₹42,30,000
06If every payout had been reinvested₹45,01,751

₹61,500 a quarter is a dependable income at the highest risk-free rate available. Taking it costs ₹2,71,751 over five years against letting the same rate compound — 41% returned instead of 50.1%. For someone living on the income that is simply the price of the arrangement; for someone who does not need it yet, it is a reason to look elsewhere.

Important considerations

01
The payout is the product, not a flaw
Comparing SCSS unfavourably with a compounding deposit misses what it is for. Someone drawing an income needs money to arrive on a schedule, and a scheme that pays 8.2% quarterly with government backing and a fixed rate does that better than almost anything else available. The compounding figure is there to price the choice, not to argue against it.
02
Two accounts double the ceiling
The ₹30 lakh limit applies per individual. A couple who both meet the age condition can open separate accounts and hold ₹60 lakh, taking roughly ₹1,23,000 a quarter between them. Splitting the deposit across two people also spreads the income across two sets of slab rates and two 80TTB deductions.
03
A fixed income loses ground to inflation
Nothing in this scheme rises over five years. A systematic withdrawal plan from a fund can be increased over time, at the cost of market risk and no guarantee the corpus lasts. The SWP calculator shows that alternative, and the honest comparison is between a certain but shrinking income and an uncertain but adjustable one.

Limitations

Tax is not computed. The interest is taxable at your slab rate, though Section 80TTB gives senior citizens a deduction on interest income, and TDS applies above the threshold.
The income is fixed in rupees for five years, so inflation erodes it throughout. At 6% inflation, ₹61,500 in year five buys what about ₹48,700 buys today.
Premature closure carries a penalty that depends on when you exit, and is not modelled here.
The Section 80C deduction on the deposit is not included, and for a new depositor still within the limit it improves the effective return.

Frequently asked questions

Common questions about the senior citizen savings scheme calculator and the assumptions behind it.

Next useful checks

Move from this result to the next decision without hunting through the full calculator list.

PPF CalculatorCompare tax-free small-savings compounding.Fixed Deposit CalculatorCompare government schemes with bank-deposit assumptions.Recurring Deposit CalculatorModel smaller monthly deposits instead of lump sums.

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Disclaimer

This calculator is provided for general information and planning only. It is not investment, tax or legal advice, and it does not take your personal circumstances into account. Outputs are estimates based on the assumptions stated on this page, exclude taxes and charges unless said otherwise, and market-linked returns are not guaranteed — the value of investments can fall as well as rise. Lending terms, rates and eligibility are decided by the lender. For advice on your own situation, speak to a qualified professional, several of whom you can consult on Finvestalk.